Schaeffer's Options Center
Sponsored by:
Schaeffer's Daily Option Blog

by 10/25/2000 10:27 AM
Stocks quoted in this article:
Ma Bell is giving birth to more offspring again today, as AT&T (T – 24-1/4) announced this morning that it will break its enterprise into four new units: AT&T Wireless, AT&T Broadband (a cable firm), AT&T Business, and AT&T Consumer. The re-structuring plan is scheduled for completion in 2002. The Wireless and Broadband units will be offered publicly as common stocks, while the Consumer operations will be regulated by a tracking stock. The Business unit will represent the core of T.

In other news, T announced third-quarter earnings last night of 38 cents per share, exceeding analysts' estimates by two cents per share. Revenue for the quarter climbed about four percent compared to 1999. The telecommunications firm's revenue from consumer services declined. T officials cited increased competition in the long-distance field and the growing use of wireless service. Wall Street was eager to submit its two cents this morning, as two brokerage firms downgraded the shares, while one firm boosted its rating on T as well as on AT&T Wireless (AWE – 21-1/2).

In mid-morning trading, T has declined nearly 10 percent on the various news. The most-active T option trading is the April 30 put, where 3,500 contracts have traded. The April 30 call is a close second, having seen 2,952 contracts cross the tape. These are currently two of the most-active options on the CBOE
permalink


by 10/25/2000 10:11 AM
Stocks quoted in this article:
Excite@Home (ATHM – 10-1/2), which is controlled by AT&T (T – 25-3/16), offers Internet service to over two million residential subscribers. Ma Bell holds a 25-percent economic interest and a 74-percent voting interest in the firm. Since early December, ATHM has been declining beneath unyielding resistance at its 10-week and 20-week moving averages. Furthermore, the equity resides beneath its long-term moving averages.

After last night's close, ATHM reported a third-quarter loss of 10 cents per share, matching the consensus estimate on Wall Street. However, ATHM officials forecasted that its fourth-quarter loss should be in the neighborhood of eight-to-10 cents per share, as opposed to the six-cent loss expected by analysts. Lower-than-expected revenue growth throughout the third quarter has been cited for this impending shortcoming. Shortly before the close, ATHM's rating at a brokerage house was cut from an "outperform" to a "hold."

Surprisingly, the equity has risen over three percent today, despite its earnings forecast and broader-market weakness. <
permalink


by 10/25/2000 10:11 AM
Stocks quoted in this article:
Ask Jeeves (ASKJ – 10-57/64) operates an Internet search engine that allows its users to frame their searches in the form of a question. Additionally, the company designs specialized search engines for corporate Internet sites. Similar to the majority of Internet names, ASKJ has been slipping lower throughout 2000, sitting almost 95 percent off its annual high of 190-1/2 reached last November.

Today, ASKJ has already sloughed off 1-1/4 points, or over 10 percent, in early trading. Last night, the company reported a third-quarter loss of 36 cents per share. This was an upside surprise, as Wall Street had expected the firm to post a wider loss of 42 cents per share. Company officials also noted that ASKJ should enjoy "sustained profitability" by the fourth quarter of 2001. However, this strong fundamental news was clouded by the announcement of the company's chief financial officer resignation. This morning before the open, the stock was downgraded at a brokerage house from a "strong buy" to a "buy."
permalink


by 10/25/2000 9:15 AM
Stocks quoted in this article:
Affymetrix (AFFX – 52-5/16) announced late yesterday that it broke even for its third-quarter earnings. This maker of genetic research tools was expected to lose 12 cents per share. According to I/B/E/S International, this marked the company's fifth positive earnings surprise in the previous six quarters.

Heading into this earnings report, the stock dropped by more than five percent on Tuesday to slip back below both its 10-day and 20-day moving averages. The shares remain in the midst of a near-term slump, as they have wilted by over 37 percent since their September 1 intraday high. AFFX is also trading below all of its significant intermediate-term and long-term moving averages. However, the security should receive a boost from yesterday's positive earnings surprise, as it is poised to open greater than five points, or nearly 11 percent, higher this morning.

<
permalink


by 10/24/2000 3:47 PM
Stocks quoted in this article:
Thanks to upgrades from two major brokerage firms, PeopleSoft (PSFT – 43-1/2) notched its second straight two-year high in today's trading. The equity has put on a solid run over the past five months, rallying over 260 percent since its mid-May lows.

Call players are hopping on board today, particularly on the December 50 call, where over 2,800 contracts have changed hands. Since this option has open interest of just 108 contracts, this activity should translate to new positions.

PSFT's options configuration is already slanted to the call side. Its Schaeffer's put/call open interest ratio (SOIR) stands at a low reading of 0.23, which indicates that call open interest exceeds put open interest by a margin of over four to one for options expiring within the next three months. For more information on SOIR, please visit Schaeffer's Daily Sentiment. <
permalink


Featured Brokers
ADVERTISEMENT
Unusual Option Volume
Option Flow
ADVERTISEMENT
ADVERTISEMENT
Most Active Stocks
Most Active Option Strikes
Largest Open Interest

Partner Center

© 2014 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: service@sir-inc.com

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.